Why Take FAR First? A Smarter CPA Exam Strategy

Updated October 8, 2026.

If you are deciding which CPA exam to take first, I generally recommend that you take FAR first. Financial Accounting and Reporting (FAR) builds financial accounting knowledge that supports Auditing and Attestation (AUD) and Taxation and Regulation (REG). The best starting section still depends on your preparation.

You have probably heard the advice to get FAR out of the way because it is the hardest section. My reason for recommending FAR first is its place in the learning process: understanding financial statements makes it easier to study how to audit them and how financial accounting differs from tax accounting.

My personal experience: I took AUD first

I am recommending a strategy that I did not follow myself. I took AUD first.

At Bloomsburg University, I completed a rigorous auditing course taught by Dr. Michael Shapeero. I felt well prepared for the AUD section, passed on my first sitting, and walked out of the exam feeling confident about my performance. I started with the subject I was most comfortable with, and that approach worked for me.

That experience belongs in this discussion because your preparation matters. If you already have a strong advantage in one section, starting there can be reasonable. But if you are equally comfortable with the sections, equally uncertain about them, or returning to accounting after time away, FAR is the starting point I recommend. It gives you a foundation to build on.

Watch: why I recommend taking FAR first

Why FAR has a reputation as the hardest CPA exam section

FAR brings together financial reporting concepts that build on one another. A question may require you to understand a transaction, determine the accounting treatment, calculate an amount, and identify its effect on the financial statements. Gaps in the basics can make that sequence feel overwhelming.

Pass rates also contribute to FAR’s reputation. In the AICPA’s published cumulative results through Q2 2026, FAR had a 42.95% pass rate, compared with 48.65% for AUD and 66.78% for REG. Those figures describe results across candidates; they do not establish which section will be hardest for you. See our CPA exam pass-rate guide for the full comparison.

My answer to the difficulty question is the point I make in the video: “The hardest section is the section that you are least prepared for.” If your financial accounting foundation is strong but your auditing knowledge is weak, AUD may challenge you more than FAR. A candidate with a different background may have the opposite experience.

FAR is demanding, but its reputation should not decide your exam order. Assess what you understand and where your preparation needs work.

Why take FAR first? The foundation carries into AUD and REG

1. Understand the accounting before you audit it

Think about the sequence of your college accounting courses. Financial accounting and intermediate accounting provide the background for understanding financial statements. Auditing then asks you to evaluate evidence about those statements. That learning sequence is the idea behind my FAR-first recommendation.

For example, understanding how a sale affects revenue and accounts receivable gives you context when studying audit procedures for those accounts. Knowing how an accounting error affects the statements helps you understand why an auditor cares about it.

You still need to study audit evidence, risk, internal controls, reporting, and the other AUD topics. FAR gives that work an accounting foundation. It can reduce the need to stop an auditing lesson to relearn the transaction underneath it.

2. Learn the financial accounting side of book–tax differences

REG includes tax rules, and those rules do not always produce the same result as financial accounting. Understanding book income helps you make sense of a reconciliation from income per books to income for tax purposes, such as Schedule M-1.

In the video, I also mention deferred taxes. The useful connection is understanding that financial reporting and tax rules can recognize items in different periods. FAR introduces the financial reporting perspective; your tax studies develop the relevant tax treatment. You do not need to master every deferred-tax calculation before beginning REG, but understanding the relationship gives you a stronger starting point.

This is why I recommend learning the foundation early. You can connect later material to something you already understand instead of treating every topic as an isolated rule.

3. Turn recent coursework into a stronger starting point

If you recently studied intermediate accounting, starting with FAR lets you build on material that is still familiar. If those courses were several years ago, preparing for FAR gives you an opportunity to rebuild that knowledge before moving deeper into auditing and tax.

Be realistic about what needs review. If adjusting entries, accrual accounting, or the relationships among the financial statements are unclear, spend time on those concepts. Simply moving to a different exam section will not automatically close those gaps.

When starting with another section can make sense

My own AUD-first experience is a reminder that a useful recommendation must leave room for the candidate. A strong auditing course, substantial tax experience, or unusually strong readiness in another section may justify a different starting point.

Use fresh practice questions and simulations to check that readiness. Familiarity with the vocabulary is not the same as being able to apply the material. Also consider how much study time you have, your work commitments, and your scheduling options.

If you have already passed AUD or REG, build on that progress. You do not need to restart your plan because you did not begin with FAR. My advice is most useful when you are choosing your starting point or deciding how to repair gaps in your foundation.

How to plan your CPA exam order after FAR

The current exam requires three Core sections, FAR, AUD, and REG, plus one Discipline: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). The NASBA CPA Exam Candidate Guide confirms that you may take the sections in any order. FAR first is my study recommendation, not an exam prerequisite.

For a candidate without a stronger reason to choose another sequence, FAR followed by AUD is a practical starting plan because the financial reporting knowledge remains fresh. Then plan REG and your selected Discipline around your background, the content relationship, and available testing dates. The Discipline does not have to come last.

Before booking, check your board’s current credit-expiration rules and your Notice to Schedule. Credit periods and the way they are measured depend on the jurisdiction; do not build your plan around a universal 18-month assumption. Use the AICPA Exam Blueprints that apply to your testing date to confirm what each section covers.

How to prepare if you choose FAR first

Start by identifying the concepts you cannot yet explain. Work a practice problem, review the reasoning, and then solve a different problem without looking at the answer. Include both multiple-choice questions and task-based simulations, and revisit earlier topics as you progress.

When you miss a question, determine whether the problem was the accounting concept, the calculation, the reading of the facts, or your pacing. That gives your next study session a specific purpose. Repeating questions without understanding the mistake can leave the same weakness in place.

If you need help rebuilding the foundation, explore my Intermediate Accounting course or try the Farhat Lectures free sample course. Use the lessons alongside your CPA review materials and the applicable exam blueprint.

Frequently asked questions about taking FAR first

Should I take FAR or AUD first?

I generally recommend FAR first because understanding financial reporting supports your AUD studies. AUD first can still make sense if you are particularly well prepared for it, as I was after my auditing course at Bloomsburg University.

Is FAR always the hardest CPA exam section?

No section is automatically the hardest for every candidate. FAR’s pass rates show that many candidates find it challenging, but your own difficulty depends on your background, preparation, and ability to apply the material.

Do I have to pass FAR before taking REG?

No. You may take REG before FAR. My recommendation to start with FAR is about building financial accounting knowledge that helps you understand the relationship between book income and tax rules.

Choose your first section with your preparation in mind. If you do not have a clear reason to begin elsewhere, take FAR first and build the foundation you will use throughout the rest of your CPA studies.